Free CTFA Exam Braindumps (page: 12)

Page 12 of 113

"Shareholder wealth" in a firm is represented by:

  1. The number of people employed in the firm
  2. The book value of the firm's assets less the book value of its liabilities
  3. The amount of salary paid to its employees
  4. The market price per share of the firm's common stock

Answer(s): D



The long-run objective of financial management is to:

  1. Maximize earnings per share
  2. Maximize the value of the firm's common stock
  3. Maximize return on investment
  4. Maximize market share

Answer(s): B



What are the earnings per share (EPS) for a company that earned $100, 000 last year in after-tax profits, has 200, 000 common shares outstanding and $1.2 million in retained earning at the year end?

  1. $100, 000
  2. $6.00
  3. $0.50
  4. $6.50

Answer(s): C



A single, overall cost of capital is often used to evaluate projects because:

  1. It avoids the problem of computing the required rate of return for each investment proposal
  2. It is the only way to measure a firm's required return
  3. It acknowledges that most new investment projects have about the same degree of risk
  4. It acknowledges that most new investment projects offer about the same expected return

Answer(s): A



Page 12 of 113



Post your Comments and Discuss ABA CTFA exam with other Community members:

JUAN commented on June 28, 2023
aba questions to practice
UNITED STATES
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JUAN commented on June 28, 2023
aba questions to practice
UNITED STATES
upvote

Alo commented on November 12, 2018
we shall see, just downloaded. Will report back
Anonymous
upvote